CREDAI urges government to simplify processes to curb black money in realty sector

MUMBAI: Property developers across the country represented by Confederation of Real Estate Developers' Association of India have urged the government to simplify processes to avoid black money creation in realty sector.

While stressing the requirement of single window clearances, the realtors' body suggested an all-round reforms and an end to the 'License Raj' that continues to govern the developers. It suggested reforms in four major areas-- administrative, land, tax and banking--impacting real estate community.

"We too hate the system that labels us as crooks, cheats and breeders of black money," said Lalit Kumar Jain, national president of CREDAI. He called for realizing the fact that the various bottlenecks at government level at central government and in several states are equally responsible for this menace.

He was reacting to the recent 'White Paper on Black Money' presented by Union Finance Minister Pranab Mukherjee. "It's a good attempt at focusing the nation's attention on the issue, but it unfortunately picks on the real estate and deals with just a couple of issues like the Stamp Duty as though that is the only cause of the problem," said Jain.

CREDAI also suggested that the elected representatives should not be only policy makers and not have executive authorities. And if they hold executive power then they should be equally responsible like any other government employee with no immunity.

According to him, there were over 40 clearances that a developer is expected to obtain and leads to human interaction with over 150 officials in this process. Any delay at any stage gives rise to "greasing of palms" as the developer is always anxious to finish his project in time and avoid delays, Jain said while justifying his stand that realty developers are victims and not beneficiaries of system.